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Beware the price shopper!
Written on the 24th of February 2012 by Macmillans Waller Fry - Accountants
Most businesses work on the basis that they are supposed to sell on value and not price.
What happens when a business is faced with the prospect of a priceonly buyer?
First, make sure they really are in fact a priceonly buyer. In most cases, salespeople are too quick to place a ‘price-only buyer’ label on their prospect’s forehead. It is stuck on before they dig deep enough into the prospect’s world to truly understand their business and their motivation to buy the cheapest. For example, a customer in the construction industry may be finding that they have a large number of tools ‘disappear’ on a worksite. They may be compelled to purchase cheaper tools in order to minimise losses.
This may mean missing out on the increased performance of the higher quality tools that they may prefer. This does not necessarily make them a price shopper - just prudent in minimising a problem. Before making the assumption that a prospect is truly a price-only buyer, dig deeper. Once you have revealed their true reason and it is, truly, a price-only reason, be aware of how they can affect your work.
Here are the five ways a price shopper can harm a business:
How is your pricing policy working for you? For a review of your policies and advice on how you can maximise profits from your sales, contact us today.
Author: Macmillans Waller Fry - Accountants